The landmark $2.3bn deal hands Asahi control of East Africa’s biggest brewer, while securing long-term Guinness and spirits licences.
Diageo has agreed to sell its 65 percent shareholding stake in East African Breweries Ltd (EABL) to Japan’s Asahi Group for $2.3bn, marking the largest investment by a major Japanese brewing group in an African alcoholic drinks business to date.
The agreement will see Diageo sell its 100 percent shareholding in Diageo Kenya Limited, which holds 65 percent of EABL’s shares, to the Japanese brewing giant. The transaction also includes Diageo’s 53.68 percent directly owned stake in UDVK, a Kenya-based spirits producer and importer. EABL owns the remaining 46.32 percent of UDVK, retains management control and will continue to fully consolidate the business.
EABL is the largest beer business in East Africa, operating across Kenya, Uganda and Tanzania, with a heritage spanning more than a century. In the financial year ended 30 June 2025, EABL reported net sales of $996m, EBITDA of $258m and net income of $94m, with net debt of $229m.
Nik Jhangiani, interim chief executive officer of Diageo, said:
We are incredibly proud of the achievements of EABL and our colleagues across Kenya, Uganda and Tanzania. EABL and Diageo have built the largest beer business in East Africa, a testament to driven people with a passion for the consumers and communities they serve. We are excited to partner with Asahi through the licensing of Diageo brands in the region going forward.
This transaction delivers both significant value for Diageo shareholders and accelerates our commitment to strengthen our balance sheet. We remain committed to returning the Group to well within our target leverage ratio range of 2.5 – 3.0x through disposals of non-strategic, non-core assets, alongside delivering positive operating leverage, and tighter capital discipline. This disposal, alongside the recent announcement by USL to conduct a strategic review of its ownership of RCB, represent material steps in delivering on this commitment.”
Preserving established local brands
The group has delivered strong growth across the region, supported by state-of-the-art production facilities, a seasoned board and management team, and long-standing relationships with employees, local partners and customers.
Asahi said it intends to preserve established local brands while selectively introducing globally recognised names from its portfolio to East African consumers.
As part of the deal, Diageo has committed to long-term licensing and transitional service agreements with EABL. Locally owned brands such as Tusker and Kenya Cane will remain with EABL. Refreshed agreements will allow EABL to continue producing Diageo spirits including Smirnoff and Captain Morgan, ready-to-drink brands such as Smirnoff Ice and Orijin, as well as the iconic Guinness brand under licence. EABL will also retain responsibility for the import and distribution of Diageo’s international premium spirits.
Atsushi Katsuki, president and group chief executive officer of Asahi, added:
This business is a high-quality, leading company in Kenya, Uganda, and Tanzania, with an unrivalled brand portfolio and marketing capabilities, state-of-the-art production facilities and strong market shares.
Together with its excellent management team and employees, we will pursue sustainable growth and medium- to long-term enhancement of corporate value, while contributing to the development of the local economies.”
